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Posted: November 24th, 2022
In this module, we learned about large and small business entities and how they are structured. This can include a sole proprietorship (e.g. house painter), partnership (e.g. law firm), or a corporation (e.g. your Capstone focus company). How does the size of your focus company impact its legal form? The IRS regulates the criteria for S corporations, C corporations, LLC’s, etc. The size of your company could have an impact on the allowable structure and legal form, as well as taxes owed or saved, even whether non-Americans citizens can be shareholders. Read the criteria for the forms of business ownership in the text, and then respond to the following questions:Compare the organization of your large, publicly traded focus company with a small business entity for a similar product or service.Respond to the following by including 1-2 paragraphs for each item:Provide a brief description of how your focus company is structured. Identify the form of corporate ownership used by the company — C Corporation, S Corporation, LLC, etc. and indicate the state or country in which the company was originally incorporated. What is an advantage or disadvantage of this form of ownership?How has it expanded or contracted over its history? Have they used mergers or acquisitions to become a larger company? Have they divested or sold off portions of their company that might reduce its size? Cite specific examples from your focus company.How does the organization of this company differ from a smaller business (i.e. sole proprietorship) in how it operates, grows, makes decisions, etc.?
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